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- Which of the following increases Aggregate Demand? a. Decrease in Money Supply b. Increase in Interest Rates c. Increase in the Money Supply d. Stronger US DollarDistinguish between “real-balances effect” and “wealth effect,” as the terms are used in this chapter. How does each relate to the aggregate demand curve?Assume the Country C’s economy is in recession: Country C implements a combination of expansionary fiscal and monetary policy. In the absence of complete crowding out what will be the effect on Aggregate demand, price level and interest rates in country C.
- The aggregate demand curve for an economy slopes downward because a decrease in the price level will: A.increase the demand for money. B.put an upward pressure on interest rates. C.increase the purchasing power of money. D.make domestically produced goods more expensive relative to foreign goods.According to the model of aggregate demand and supply, in the long run an increase in the money supply would cause: a) Prices and outputs to fall b) Prices to fall and outputs to rise c) Prices to rise and outputs to fall d) Prices to rise and outputs to remain unchanged e) None of the aboveOpponents of using policy to stabilize the economy generally believe that a. neither fiscal nor monetary policy have much impact on aggregate demand. b. attempts to stabilize the economy can increase the magnitude of economic fluctuations. c. unemployment and inflation are not cause for much concern. d. All of the above are correct.
- Assume that the economy is in equilibrium when aggregate demand curves shifts to the right. What happens to the economy in the short-run? the GDP gap becomes positive. Allowed to self-correct, the economy will experience higher inflation. the GDP gap becomes negative. Allowed to self-correct, the economy will experience higher inflation. the GDP gap does not change, but the inflation rate will rise. there is not enough information to answer the question.Following the equation: Y = C + I + G + NX will the below examples increase or decrease the aggregate demand in Pakistan? What will be the shift in position for below situations? Widespread fear of recession (1 Mark) The appreciation in the Pakistani Rupee rate (1 Mark) A boom in the stock market (1 Mark) An increase in transfer payment (1 Mark) A decrease in real interest rate in Pakistan (1 Mark)Which event would shift short-run aggregate supply to the right? (a) A labor shortage puts upward pressure on wages, causing an increase in the expected rate of inflation. (b) An increase in government regulation makes it more costly for firms to comply with legislative requirements. (c) Expecting inflation to increase, workers bargain for higher wages. ( d) Internet technology allows retailers to use just-in-time delivery of merchandise, thereby lowering inventory costs. Only typed answer and don't use chat gpt
- The central bank of Wakanda is tasked with providing the nation with expansionary polcies to help combat severe Wakandian unemployment following the war. As a central bank it has multiple tools they can use to boost aggregate demand. List three of these and describe each of them using one sentence.no more explanation . please as soon as possible How would each of the following factors shift the aggregate demand curve? d. an increase in the future marginal product of capital. e. an increase in the nominal money supply.f. an increase in expected inflation.g. an increase in the risk of non-monetary assets
